INCOME TAXES

9 Months Ended

Sep. 28, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense was $7.1 million and $3.1 million for the three months ended September 28, 2019 and September 29, 2018, respectively. The increase in income tax expense is due to higher income before income taxes and a higher effective tax rate. The effective tax rate for the three months ended September 28, 2019 was 25%, compared to 16% for the three months ended September 29, 2018. The lower effective tax rate for the three months ended September 29, 2018 reflected a discrete net tax benefit resulting from a revaluation of deferred tax assets for state income taxes.

Income tax expense was $14.8 million and $7.2 million for the nine months ended September 28, 2019 and September 29, 2018, respectively. The increase in income tax expense is due to higher income before income taxes and a higher effective tax rate. The effective tax rate for the nine months ended September 28, 2019 was 24%, compared to 18% for the nine months ended September 29, 2018. The lower effective tax rate for the nine months ended September 29, 2018 reflected a discrete net tax benefit resulting from a revaluation of deferred tax assets for state income taxes.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items.